Tradfi

Unlocking Billions with Real World Assets (RWA) on the Blockchain!
Attention, future visionaries! As we talk about $BTC y NFTs, a silent and massive revolution is brewing right under our noses. It’s not the Metaverse, it’s not a new meme coin, it’s something much more tangible with a potential of trillions of dollars: the tokenization of Real World Assets (RWA).
Imagine this: what if a fraction of your apartment, a part of a valuable artwork, or even a portion of a giant solar park could become a digital token that you can buy, sell, or even use as collateral for a loan, all on the blockchain? This is precisely what RWA are promising, and financial giants are already setting their sights on it.

Living out of a suitcase and tired of the whims of traditional banks? ✈️ Frozen cards, hidden fees, endless checks... sound familiar? For digital nomads, freelancers, and anyone living globally, standard banking is a constant headache.
Fortunately, the Web3 world offers an elegant solution. Let's see how it's a game changer.

J.P. Morgan is launching JPMD, a USD deposit token for institutional clients on Base, marking the first of its kind on a public blockchain for secure, 24/7 money movement. This isn't about adopting cryptocurrency. Banks are rebuilding settlement rails in public. JPMorgan Chase filed a trademark application on June 15th, which has already given hints to investors for the stablecoin project. JPMD's entry into the stablecoin space challenges existing players like Tether (USDT) and Circle (USDC), which currently dominate the market. 
This is massive for crypto as JPMorgan's entry into the deposit token market with JPMD, particularly on platforms like Base, signifies a significant endorsement from traditional finance for digital assets. This move enhances credit and liquidity channels, potentially transforming cash management and settlements. Additionally, JPMD can provide a foundation for cross-bank collaboration and stablecoin competition, offering regulated alternatives.

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Is Base Network Ready for JPMorgan’s Big Move?
The introduction of a deposit token by JPMorgan to Base gives TradFi access to go on-chain, which might open up new credit and liquidity channels for financial companies. It is an Ethereum Layer 2 platform, gaining popularity due to its scalability and institutional-grade infrastructure. Its partnership with Coinbase, which supports the deposit token, increases the platform's profile for enterprise use cases beyond retail DeFi or memecoins. This partnership brings trust, liquidity, and volumes to the platform, potentially increasing TVL and developer interest in real-world asset tokenization projects. Additionally, Coinbase's integration reduces barriers to entry for institutions, making its security, speed, and custodial offerings an attractive entry point.
JP Morgan is shifting funds onchain for this reason:
In contrast to stablecoins, the JPMD token offers prospective benefits like interest and deposit insurance by directly representing claims on commercial bank accounts. 
Reduced fees due to cheaper blockspace.Real-time auditability for regulators and risk teams.Programmable flows for split, stream, or self-refund.Allows idle cash to earn or collateralize upon wallet hit.Tradfi seeks the same advantages as crypto.Instant market reach with a browser and internet link.24/7 money movement, reducing settlement times.
Will JPMD drive massive institutional flows onto Base 
This indicates a number of significant changes in institutional finance as well as the larger ecosystem of digital assets. The collaboration will legitimize real-world asset tokenization on public blockchains, increasing transparency and enabling programmable finance. It also drives regulatory clarity, normalizing tokenized settlement, and attracting mainstream attention, driving fintechs, banks, and DeFi projects to collaborate on compliance, user experience, and global accessibility. JPMorgan's move to integrate digital assets into banking could enhance crypto integration, making it safer for larger institutions. This could also improve credit and liquidity channels by using JPMD as collateral, potentially alongside assets like spot Bitcoin ETFs. Additionally, JPMorgan's deposit tokens could challenge crypto-native stablecoins by offering regulated, institutionally-backed alternatives, potentially transforming cash management, collateral transfers, and intra-bank settlements.
The financial sector is undergoing a change as a result of this move. Due to worries about the security and use of public blockchains, banks have historically mostly refrained from introducing products on them. However, under President Donald Trump's second term, there has been a regulatory thaw towards cryptocurrency startups in the US.

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#JPMorgan #JPMD #stablecoin #TradFi

SOMA.finance is the first fully compliant multi-asset decentralized exchange (DEX) and capital raising platform. It aims to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi) by offering tokenized securities that are regulated and compliant with securities laws.
Key Features and Highlights:
Compliance: SOMA.finance operates under a regulatory framework, partnering with Tritaurian Capital, a U.S. regulated broker-dealer, to ensure compliance with securities laws. This mitigates risks often associated with other DeFi platforms.
Tokenized Securities: The platform allows for the issuance and trading of tokenized equities, digital assets, and non-fungible tokens (NFTs). This opens up new opportunities for investors to access a wider range of assets in a decentralized manner.
SOMA Token: SOMA.finance has its own native token ( $SOMA ) which is a legally issued digital security open to global and US retail investors. The token offers benefits like dividends, yield farming, compliant staking, and corporate ownership.
Accessibility: SOMA.finance aims to make digital securities accessible to both retail and institutional investors, democratizing access to investment opportunities.
Overall:
SOMA.finance is a unique platform that combines the innovation of DeFi with the regulatory compliance of TradFi. This makes it a promising player in the evolving landscape of digital assets and decentralized finance.

Since the BTC ETF trading began, Bitcoin has shown the following performance:
From a local high of $48,900 to a local low of $40,683, and currently at $41,500.Who caused such a surprise at the launch of #ETF products by companies like Blackrock, Fidelity, and Bitwise?
Here's a brief recap:
"Cobie had stated in a message that buying Bitcoin at $26K in anticipation of the BTC ETF was practically 'free money.' He was almost certain - 99% - that the BTC ETF would be approved. He expected that by the time of approval, Bitcoin would be trading at around $50K.
However, he also warned that the approval of the BTC ETF could be a trap. This event might provide an exit opportunity for investors stuck in the Grayscale BTC trust, which is holding $35B. Barry Silbert's parent company is burdened with massive debts, and they have no plans to reduce their annual 2.5% management fee.
In summary - the attempt to keep 630K BTC as hostages could lead to negative trading volumes and withdrawals from GBTC. This, in turn, might result in a 15% loss for BTC ETF buyers in the first week itself, possibly triggering a widespread 'sell the news' sentiment, significantly dragging down the market.
Cobie advised to cash in on the fair gains since August 23rd and sell a day before the BTC ETF approval."
So, who's pouring cold water on us and on TradFi $BTC ?
It's Barry Silbert and his Grayscale hostage friends.
In the first five days, the BTC ETF saw:
A positive inflow of $722M on Jan 11,$707.8M on Jan 12,$549.6M on Jan 16,$932.3M on Jan 17, and$448M on Jan 18.
Despite $2.2B in Grayscale redemptions and $3.36B in inflows, why do we observe a 17% decline in BTC?
I propose three hypotheses:
Blackrock, in their BTC ETF application, accurately predicted the inflow and were able to accumulate BTC reserves on Coinbase through affiliated partners. For each required new share issuance and BTC purchase, they are transferring pre-purchased BTC from one account to another, formally meeting their reserve requirements.FTX and bankrupt BlockFi own a significant amount of GBTC shares. For example, FTX alone has about $720M in GBTC. Moreover, Grayscale shares are part of the liquidated assets of another bankrupt entity, 3 Arrow Capital. These liquidators might have dumped their holdings to capitalize on the high demand for BTC ETFs. Grayscale's hostages are also exploiting their long-awaited chance to escape the 2.5% annual fee of Silbert's commission.From a simple mathematical perspective, the process of issuing/redistributing BTC ETF shares usually follows a T+1 schedule.
Grayscale likely anticipates their large BTC transfers to Coinbase's deposit addresses, causing market volatility and declines.
I suspect Grayscale takes a short position on futures, anticipating the scale of the next day’s redemptions.
Blackrock's partners are likely aware of these movements.
Suppose Blackrock needs to buy $200M worth of BTC the next day. If the closing price on a given day was $43,000, they'd need about 4,650 BTC.
But if they know Grayscale's redemption will be around $600M and that Grayscale will be moving 10-15K BTC, causing a negative market reaction, why should Blackrock buy at $43,000? They could wait for the market to react to the BTC influx and then buy at a panicked price, say $40,700.
The savings? They could be passed on to affiliated partners. At the right time, instead of purchasing more, they could replenish the fund with these 'accidentally' cheap bitcoins.
How long will Grayscale continue this apparent dump? The key news is that Grayscale still has 600K BTC in reserve. The early buyers of Blackrock's BTC ETF are not endlessly patient. At some point, they may realize the predicament they're in and look to convert their Blackrock shares back into considerably devalued dollars.
#tradfi #BitcoinETFapproved